The past few months have required people to reevaluate what’s essential both at home and at work. Quarantining and social distancing have also impacted how customers consider, purchase, and consume products and services. We’ve seen that heightened motivators among customers during this time have been comfort, a desire to escape, convenience, safety, hygiene and security—not surprising considering the upheaval and stress many are experiencing in their lives.
As restrictions ease and customers emerge from quarantine, it is likely that these motivations will evolve, and new ones will prevail. Having a firm understanding of what drives customer demand for your brand is essential before you can create the most effective strategy for growth.
Right now, brands are facing one of three different demand scenarios, based on how well they are meeting rapidly evolving customer needs. It’s important to determine which one of these scenarios your brand is experiencing, and understand the customer behaviors and attitudes that are creating this situation:
1. Continuing sales momentum:
What customer behaviors and attitudes have been driving sales?
2. Reinvigorating lagging sales:
Which behaviors have been helping vs. hurting sales?
3. Revamping plans to kickstart sales:
What are the factors that have caused declining sales, and as restrictions ease, will current behaviors and attitudes result in sales re-emerging and when?
Having a firm understanding of what drives customer demand for your brand is essential before you can create the most effective strategy for growth.”
Many brands are using demand modeling to predict and monitor customer demand for the remainder of 2020 and beyond as behaviors and attitudes continue to evolve. A robust demand model will help:
- Identify if your current assumptions about customer demand are still accurate and finetune as needed
- Tease out the most profitable product investment opportunities and reprioritize your innovation pipeline
- Allocate the appropriate funding and resources more effectively
For example, a large financial services client was enjoying a degree of success with their product development initiatives. But the team was charged with continuing this sales momentum and getting more return from the investment. Using demand modeling and its robust analytics, we were able to develop a segmentation approach that improved customer engagement by 600%.
Want to learn more about how demand modeling can provide customer insights for your brand?
